I could swear I read the same thing 6 months ago.

: )

You ain't seen nothin yet, Mr. Troll.
Jas
Jas Jain

How are the homebuilder puts doing, Jas?
O-Joe

So much hot bubble action today:
June crude closes at $125.80/brl, up $1.57, or 1.3%
June heating oil up 3.9% to close at a record $3.70/gal
ac

You did notice the divergence with the AGs and PMs far off their highs? This is intermarket bearish divergence big time. Just ask the gold bugs how life is since mid -March.
O-Joe

Finally, an MSM columnist gets it right.

Speculators have been tolerated to the degree that they add economic value through liquidity, but not to the point that they can manipulate prices. Nowhere is there room for the type of long-term investment capital that marks today's environment. In practice, the problem is that the investment capital is too large relative to the size of the underlying commodity markets...
ac

You hear things like this each time the K-cycle turns around. And every time people are stunned and shocked how demand outstrips supply all of a sudden leading to higher prices. Then all this speculator blablabla comes up. Past ~2036 when the opposite will happen again, people will be dumbfounded how there is too much stuff around and how prices go down.
O-Joe

MBI MBIA Inc: Moody's says worsening second lien RMBS could impact financial guarantor ratings (9.57 -0.27) -Update-

Moody's highlights the persistent poor performance and continued downward rating migration among 2005-2007 vintage second lien mortgage securities. Moody's notes that financial guarantors have significant exposure to second lien RMBS, primarily through guaranties on direct RMBS transactions, and to a lesser extent, through exposure to ABS CDOs, where second lien RMBS securities typically constitute less than 5% of collateral within such CDOs. Moody's loss expectations for this asset class are higher than previously anticipated, owing to worse-than-expected performance trends. This could have material implications for the estimated capital adequacy of financial guarantors most exposed to this risk. In recent announcements of first-quarter 2008 earnings, MBIA (MBI) and Ambac (ABK) both reported material credit impairment losses on ABS CDOs and loss reserve charges on direct RMBS exposures, including second lien securitizations. Moody's said that incurred losses within both firms' direct RMBS and ABS CDO portfolios are now meaningfully higher than the rating agency's prior expected-case loss estimates, elevating existing concerns about capitalization levels relative to the Aaa benchmark. Moody's intends, in the short term, to assess whether worsening performance in this sector is likely to be material for exposed financial guarantors, and will update the market as appropriate.

O-Joe

All wars are inflationary. Take a world reserve fiat currency, borrow 2 trillion, dump it in a fractional reserve banking system with less the 10% reserve requirements which then floods a global banking system and you have the recipe for an inflationary cluster f#ck which has been creating bubbles out the wazoo.

"How are the homebuilder puts doing, Jas?
O-Joe"

Better Q for you O-Joe. How are those homebuilder profits looking?

"Toll said home sellers seem to be more worried about whether they can sell their homes than about declining prices"

That comment doesn't quite make sense. If a seller is more concerned about selling their home than the price they should keep lowering the price until it sells. No takers at $600,000? Try $500,000. If that doesn't work, I'll bet $400,000 would find some takers.